8. In January 2017, Mitzu Co pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Buliding 2 will be a company office; it is appraised at $767,000, with a useful life of 20 years and a $85,000 salvago value. A Ighted parking lot near Building 1 has improvements and improvements 1) valued at $472,000 that are expected to last another 16 years with no salvage value Without the buildings and improvements, the tract of land is valued at $1,77000. The company also incurs the following additional costs: Part 1 of 3 $ 341.400 181,400 Sints Cost to demolish Building 1 Cestat al land grading Cest to construct new building Building 3), having a weful life of 25 years and a $30,000 salvage value Cost of new land improvements and prevents 2 near Building 2 having 4 20-year ul life and mo salvage value 2,222,000 168.000 eBook Problem 8-3A Part 1 AL Required: 1 Allocate the costs incurred by Mitzu to the approprtate columns and total each column. Allocation of purchase price Appraised Value Percent of Total Appraised Value Tatal cost of acquisition Apportioned Cost Building 2 Land improvements Totals 5 1,711,000 707.000 472.000 32.850.000 XXX 0% Building 2 Building Land 52.000.000 Land provenientes Land Improvements Purchase Demonios Landgrading New boring Construction Nepovements 2.21.00 163.000 30 Elle of 25 years La valme Cost of new land improvements (Land Tepoverents 2) DA Building 2 having 20 year useful life and no salvage vala 3 2,222,000 168,000 Problem 8-3A Part 1 Required 1 Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of purchase price Appraised Value Percent of Total Appraised Value Total cost of acquisition Apportioned COSE $ Land Building 2 Land Improvements 1 Totals 1.711.000 767.000 472.000 2.950,000 XXX $ $ 0 Building 2 Building 3 Land Land Improvements 1 Improvements 2 $ Purchase Price Demolition Land grading New building Construction cost) New improvements Totals Land 2.800.000 341,400 187,400 2.222.000 168,000 188.000 $ 3.328,800 $ 0 $ 2.222.000 5 0 $ Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following Information applies to the questions displayed below) In January 2017, Mitzu Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 an build a new store in its place. Butlding 2 will be a company office: It is appraised at $767000, with a useful life of 20 yea and a $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $472.000 that are expected to last another 16 years with no salvage value. Without the buildings and improvements. th tract of land is valued at $1,711,000. The company also incurs the following additional costs: $ 341,400 182.400 Cost to demolish Building 1 Cost of additional land grading Cont to construct new building (Building 3), having a useful life of 25 years and asas.000 salvage value Cost of new land improvements and Improvements 21 near Building a having a 20-year useful life and no salvage value 2,22,000 169.000 Problem 8-3A Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of purchase price Appraised Percent of Total Annraised Total cost of sitios Apportioned Dost Wali